KUALA LUMPUR: Malaysian palm oil associations on Monday called for the government to review a windfall profit levy on the palm oil industry.

In a statement, the groups also urged the government to raise the profit threshold level for the levy, and to revert the 3% tax rate for planters in Sabah and Sarawak states back to the previous rate of 1.5%. That cut was recently proposed by the government.

Malaysia, the world’s second largest palm oil exporter, imposes a windfall levy of 3% on palm oil prices above 3,000 ringgit ($627.88) per metric ton in Peninsular Malaysia and above 3,500 ringgit per ton in Sabah and Sarawak – the country’s largest palm oil producing states.

Malaysia’s plantations and commodities ministry in September said it was reviewing the windfall levy and hoped to complete it next year. It has also said it does not plan to abolish the tax. – Reuters